UNITED
STATES


SECURITIES
AND EXCHANGE COMMISSION


Washington,
D.C.  20549




FORM
10-KSB




Annual
Report Pursuant to Section 13 or 15(d) of


Securities
Exchange Act of 1934




Commission
      FileFor the fiscal year
      ended  December 31,
      2007
              Number  0-12210




PRESIDENTIAL
      ASSOCIATES I LIMITED PARTNERSHIP(Exact
      name of small business issuer as specified in its
      charter)







Maryland
            
            04-2801764(State of
      organization)
            
            (IRS Employer
      Identification No.)






1280
      Massachusetts Avenue, Cambridge, Massachusetts
              
              02138(Address of
      principal executive offices)
              
              (Zip  Code)
   Issuer’s telephone
      number including area code:
                  
                  (617)
      876-4800
 Securities
registered pursuant to Section 12(b) of the Act:     
None





Securities
registered pursuant to Section 12(g) of the Act:





Units of
Limited Partnership Interest


(Title of
Class)







Check
whether the issuer is not required to file reports pursuant to Sections 13 or
15(d) of the Exchange Act o





Check
whether the issuer: (1) filed all reports required to be filed by Section 13 or
15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for
such shorter period that the registrant was required to file such reports), and
(2) has been subject to such filing requirements for the past 90
days.   Yes x   No o





Check if
there is no disclosure of delinquent filers pursuant to Item 405 of Regulation
S-B contained in this form, and no disclosure will be contained, to the best of
registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB.  o




Indicate
by check mark whether the Registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act)    Yes o   
No x





Issuer’s
revenues for its most recent fiscal year were $0.





No public
trading market exists for units of the limited partnership interest of the
Partnership, and, therefore, no aggregate market value can be computed and 590
units of limited partnership interest were outstanding as of April 14,
2008.





DOCUMENTS
INCORPORATED BY REFERENCE





None











Certain
matters discussed herein are forward-looking statements.  We have
based these forward-looking statements on our current expectations and
projections about future events.  Certain, but not necessarily all, of
such forward-looking statements can be identified by the use of forward-looking
terminology, such as “believes,” “expects,” “will,” “should,” “estimates,” or
“anticipates,” or the negative thereof or other variations thereof or comparable
terminology.  All forward-looking statements involve known and unknown
risks, uncertainties and other factors which may cause our actual transactions,
results, performance or achievements to be materially different from any future
transactions, results, performance or achievements expressed or implied by such
forward- looking statements.  Although we believe the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, we can give no assurance that our expectations will be attained or
that any deviations will not be material.  We disclaim any obligations
or undertaking to publicly release any updates or revisions to any
forward-looking statement contained in this annual report on Form 10-KSB to
reflect any change in our expectations with regard thereto or any change in
events, conditions or circumstances on which any such statement is
based.





PART
I





Item
1.     Description of
Business.





Organization





Presidential Associates I Limited
Partnership (the “Partnership”) was organized as a Maryland limited partnership
under the Maryland Revised Uniform Limited Partnership Act on July 20, 1983, for
the purpose of investing in Presidential Towers Ltd. (the “Operating
Partnership”), an Illinois limited partnership organized for the purpose of
building, owning and operating a residential apartment complex in downtown
Chicago, Illinois (the “Project”).





The general partners of
the Partnership are Winthrop Financial Co., Inc., a Massachusetts corporation
(the “Managing General Partner”), and Linnaeus-Phoenix Associates Limited
Partnership (“Linnaeus-Phoenix”).  Collectively, the Managing General
Partner and Linnaeus-Phoenix are referred to herein as the “General
Partners.”  The Managing General Partner is a wholly-owned subsidiary
ofERI/WIN GP LLC.Effective
October 7, 2006, ERI/WIN GP LLC, a wholly-owned subsidiary of Equity Resource
Investments, LLC (“Equity Resource”), acquired a 100% ownership interest in the
Partnership’s Managing General Partner. Equity Resource is a Cambridge,
Massachusetts based real estate company.  The transfer of the ownership
interest in the Partnership’s Managing General Partner is not expected to have a
material effect on the Partnership’s operations.See
“Employees” below.





The only business of the Partnership is
investing as a limited partner in the Operating Partnership.  As of
the date hereof, the general partners of the Operating Partnership are (i)
McHugh Levin Associates Venture (“McHugh Levin”), an Illinois limited
partnership whose general partners are James P. McHugh and Daniel E. Levin, (ii)
Madison-Canal Company, an Illinois limited partnership whose general partner is
Daniel J. Shannon and (iii) TKI Presidential Partners.





2


As of the date hereof, the Partnership
holds a 19.998% limited partnership interest in the Operating
Partnership.  In exchange for this interest the Partnership made a
capital contribution of $33,172,524 to the Operating Partnership.  See
“Restructuring of Operating Partnership.”





Development





The Partnership was initially
capitalized with contributions totaling $300 from the General
Partners.  In September 1983, the Partnership completed a private
offering of 590 units of limited partnership interest (the “Units”) pursuant to
Regulation D under the Securities Act of 1933.  The Partnership raised
$59,000,000 in capital contributions from 545 investor limited partners (the
“Limited Partners”).  Of the $59,000,000 raised, $697,380 was received
upon the Limited Partners’ admission to the Partnership, and the balance was
paid in installments pursuant to the terms of promissory notes (the “Investor
Notes”) delivered to the Partnership by the Limited Partners.  The
last installment was due on January 15, 1990.  However, as of April 1,
2006, $21,865 of this installment remains uncollected.  During the
year ended December 31, 2007, the amount of capital contribution receivable from
such investors was adjusted with the distributions payable to such
investors.





As a result of a restructuring
transaction that occurred in 1995 and the  investment by TKI
Presidential Partners (“TKI”) of $14,000,000 over a six year period in the
Operating Partnership, the Partnership’s interest in the Operating Partnership
was reduced from a 94.99% limited partnership interest to a 19.998% limited
partnership interest and certain control rights over major business decisions of
the Operating Partnership were transferred to
TKI.    Pursuant to the terms of the partnership agreement
of the Operating Partnership, the Partnership is entitled to receive a
reimbursement from the Operating Partnership for its administrative expenses and
professional fees up to an annual maximum of $30,000.  The Operating
Partnership made distributions to the Partnership during 2007 and 2006 of
$65,393,460 and $553,745, respectively.





On March
7, 2007 the Operating Partnership entered into an agreement to sell the
Project.  The sale closed on April 18, 2007, resulting in a cash
distribution of $65,393,460 to the Partnership.  The Managing General
Partner has reserved $5,000,000 intended to cover any unforeseen
liabilities.  After repayment of debt, expenses incurred by the
Operating Partnership in connection with the sale, and costs and fees payable by
the Partnership in connection with the transaction, the Managing General Partner
distributed cash proceeds to the investor limited partners in the aggregate
amount of $56,227,336, which equates to $94,239.56 per investment unit for
individuals and $98,032.69 for non-individuals.  As of December 31,
2007, there were approximately 504 investor limited partners holding 590
outstanding units.





Employees





The
Partnership has no employees.  From December 1997 to September 2005,
Coordinated Services of Valdosta, LLC (“Coordinated Services”) provided asset
management and investor services to the Partnership pursuant to a Services
Agreement.  As a result of this agreement, Coordinated Services had
the right to direct the day to day affairs of the Partnership,




3


including,
without limitation, reviewing and analyzing potential sale, refinancing or
restructuring proposals by the Operating Partnership, preparation of all
Partnership reports, maintaining Partnership records and maintaining bank
accounts of the Partnership.  Coordinated Services was not permitted,
however, without the consent of the Managing General Partner, or as otherwise
required under the terms of the Partnership’s Agreement of Limited Partnership
(the “Partnership Agreement”) to, among other things, cause the Partnership to
consent to a sale of an asset or cause the Partnership to file for
bankruptcy.  As compensation for providing these services, the
Managing General Partner and its affiliates assigned to Coordinated Services all
of their rights to receive fees from the Partnership as provided in the
Partnership Agreement, which fee is paid directly from the Operating
Partnership.  On September 1, 2005, the agreement with Coordinated Services
was terminated and the Managing General Partner is now directly responsible for
providing the asset management and investor services to the
Partnership.





Item
2.     Description of
Properties.





The Partnership has no properties other
than its interest in the Operating Partnership.





Item
3.     Legal
Proceedings.





To the best of the Partnership’s
knowledge, there is no material pending legal proceedings to which it is a
party.





Item
4.     Submission of Matters to a
Vote of Security Holders.





No matter was submitted to a vote of
security holders during the period covered by this report.





Recent
Developments





On January 24, 2008, the Partnership
received a distribution from the Operating Partnership of
$1,679,832.  This leaves the Operating Partnership with approximately
$1,000,000 in its bank account to satisfy contingent
obligations.  Once these obligations are satisfied, it is expected
that the Operating Partnership will distribute any remaining funds and
liquidate.





On February 27, 2008, theManaging General Partner distributed cash proceeds to the limited
partners in the aggregate amount of $1,302,104 which equates to $2,206.95 per
investment unit.










4


PART
II





Item
5. Market for the Issuer’s
Common Equity, Related Security Holder Matters and Small Business Issuer
Purchases of Equity Securities.





The Partnership is a limited
partnership and thus has no common stock.  There is no established
public trading market for the Units in the Partnership.  Trading in
Units is sporadic and occurs solely through private transactions.





As of April 1, 2008, there were
approximately 504 holders of 590 outstanding Units.





The Partnership Agreement requires that
Cash Flow (as defined therein) be distributed to the partners in specified
proportions at reasonable intervals during the fiscal year and in any event no
later than 60 days after the close of each fiscal year.  There are no
restrictions on the Partnership’s present or future ability to make
distributions of cash flow.  For the years ended December 31, 2007 and
2006, the Partnership made distributions to its investor limited partners of
approximately $56,227,336 and $0, respectively, and $307,656 and $0 to each of
the General Partner and the special limited partner.  See Item 6
“Management’s Discussion and Analysis or Plan of Operation” for the
Partnership’s ability to make distributions in the future.





Over the
past few years many companies have begun making “mini-tenders” (offers to
purchase an aggregate of less than 5% of the total outstanding units) for
limited partnership interests in the Partnership.  Pursuant to the
rules of the Securities and Exchange Commission, when a tender offer is
commenced for Units the Partnership is required to provide limited partners with
a statement setting forth whether it believes limited partners should tender or
whether it is remaining neutral with respect to the
offer.  Unfortunately, the rules of the Securities and Exchange
Commission do not require that the bidders in certain tender offers provide the
Partnership with a copy of their offer.  As a result, the General
Partners often do not become aware of such offers until shortly before they are
scheduled to expire or even after they have expired.  Accordingly, the
General Partners do not have sufficient time to advise limited partners of its
position on the tender.  In this regard, please be advised that
pursuant to the discretionary right granted to the Managing General Partner in
the Partnership Agreement to reject any transfers of Units, the General Partners
will not permit the transfer of any Unit in connection with a tender offer
if:  (i) the Partnership is not provided with a copy of the bidder’s
offering materials, including amendments thereto, simultaneously with their
distribution to the limited partners; (ii) the offer does not provide for
withdrawal rights at any time prior to the expiration date of the offer and, if
payment is not made by the bidder within 60 days of the date of the offer, after
such 60 day period; and (iii) the offer is not open for at least 20 business
days and, if a material change is made to the offer, for at least 10 business
days following such change. As of the date of this report, no further transfers
of Units will be permitted due to the sale of the Project by the Operating
Partnership.










5


Item
6.     Management’s Discussion and
Analysis or Plan of Operation.





The matters discussed in this Form
10-KSB contain certain forward-looking statements and involve risks and
uncertainties (including changing market conditions, competitive and regulatory
matters, etc.) detailed in the disclosure contained in this Form 10-KSB and the
other filings with the Securities and Exchange Commission made by the
Partnership from time to time.  The discussion of the Partnership’s
business and results of operations, including forward-looking statements
pertaining to such matters, does not take into account the effects of any
changes to the Partnership’s business and results of
operation.  Accordingly, actual results could differ materially from
those projected in the forward-looking statements as a result of a number of
factors, including those identified herein.





Liquidity and Capital
Resources





The
Partnership’s primary source of liquidity is distributions from Presidential
Towers Ltd., an Illinois limited partnership (the “Operating
Partnership”).  As a result of a significant restructuring of the
ownership and debt of the Operating Partnership that was finalized in April
1995, the Partnership currently holds a 19.998% limited partnership interest in
the Operating Partnership.  The Partnership is responsible for paying
various administrative costs associated with monitoring the Partnership’s
investment in the Operating Partnership, and paying various professional fees
associated with the affairs of the Partnership.





The
Operating Partnership made a distribution to the Partnership during the years
ended 2007 and 2006 of $65,393,460 and $553,745, respectively.  In
connection with the April 1995 restructuring, the Partnership is entitled to
receive a reimbursement from the Operating Partnership for its administrative
expenses and professional fees up to an annual maximum of $30,000 as well as its
allocable share of all distributions after a preferred return to TKI
Presidential Partners (“TKI”), which preferred return was satisfied in
2001.  In addition, the Operating Partnership distributes to the
Partnership an amount equal to the amount of income allocated to the Partnership
by the Operating Partnership in each year. Accordingly, dependingon the
property’s operating results, it is expected that the Partnership will receive
annual distributions from the Operating Partnership.





As of
December 31, 2007 and 2006, the amounts receivable from the Operating
Partnership for annual reimbursement of expenses is $60,000 and $30,000,
respectively, which is included in due from affiliates in the balance
sheet.





As of
December 31, 2007, defaulted limited partners owed the Partnership
$353,399.  This receivable is a result of five limited partners who
defaulted on their final capital call.  The amount owed to the
partnership has increased through interest income earned on the note, and
decreased by distributions paid to the partners.  Since collection of
this receivable is considered doubtful, the Partnership has recorded an
allowance for the entire $353,399.





As of
December 31, 2007, the Partnership owed distributions to investor limited
partners in the amount of $737,946.  The liability is due to checks
that were issued to investors




6


then
voided.  As of February 27, 2008, $329,838 of the liability was
repaid, while the remaining $408,108 is expected to be paid during
2008.





The
Partnership’s liquidity based on cash and cash equivalents increased by
$10,428,664 to $11,497,853 at December 31, 2007, as compared to December 31,
2006.  This increase was due to the distribution received from the
operating partnership of $65,393,460, as offset by distributions made to the
Partnership’s investors of $56,842,648.  Accounts payable and accrued
expenses increased by $6,395 for accruals made for audit and accounting fees and
legal fees.  It is expected that so long as the Partnership’s
administrative expenses do not exceed $30,000 in any year, unless the Operating
Partnership makes a distribution, the Partnership’s cash and cash equivalents
will remain relatively constant until the Operating Partnership is
liquidated.





The
Partnership’s liquid assets are currently thought to be sufficient for any
near-term needs of the Partnership.  The Partnership did not have any
off-balance sheet arrangements in any of the years as presented.





Results of
Operations





The Partnership’s net income for the
year ended December 31, 2007 was $62,113,788 as compared to net income of
$523,329 for the year ended December 31, 2006.  This increase in 2007
was due to the increase in distributions from the Operating Partnership which
was classified as other income.  There was also an increase in
interest income of $1,601,593 due to an increase in cash balances during
2007.





The Partnership is entitled to receive
interest income at 18 percent per annum on investor notes from defaulted
investors.  Due to the uncertainty of the collection of defaulted
investor notes, the Partnership recognizes interest income only as collections
are made from the final anticipated distributions due to defaulted investors.
For the year ended December 31, 2007, the Partnership earned $808,978 of
interest income, of which $449,342 is treated as distributions retained and
disclosed as a noncash operating activity on the statements of cash
flows.





The Partnership’s increase in net
income during 2007 was reduced partially by an increase in expenses mainly due
to state replacement tax of $1,572,376 and liquidation fee expense of
$2,850,000, incurred as a result of the sale of the Operating Partnership’s
underlying rental property and proposed dissolution of the Partnership and the
Operating Partnership.





Off-balance Sheet
Arrangements





The Partnership has no off-balance
sheet arrangements.





Item
7.     Financial
Statements.





The audited financial statements of the
Partnership for the fiscal years ended December 31, 2007 and December 31, 2006,
including the accompanying notes thereto, are included in this Item
7.





7


Presidential
Associates I Limited Partnership




TABLE
OF CONTENTS















PAGEREPORT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
              9FINANCIAL
      STATEMENTSBALANCE
      SHEETS
              10STATEMENTS
      OF INCOME
              11STATEMENTS
      OF PARTNERS’ EQUITY (DEFICIT)
              12STATEMENTS
      OF CASH FLOWS
              13NOTES
      TO FINANCIAL STATEMENTS
              14






























8


REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM














To the
Partners


Presidential
Associates I Limited Partnership





We have
audited the accompanying balance sheets of Presidential Associates I Limited
Partnership as of December 31, 2007 and 2006, and the related statements of
operations, partners’ equity (deficit) and cash flows for the years then
ended.  These financial statements are the responsibility of the
Partnership’s management.  Our responsibility is to express an opinion
on these financial statements based on our audits.





We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States).  Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement.  The
Partnership has determined that it is not required to have, nor were we engaged
to perform, an audit of its internal control over financing
reporting.  Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Partnership’s internal control over
financial reporting.  Accordingly, we express no such
opinion.  An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation.  We believe
that our audits provide a reasonable basis for our opinion.





In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Presidential Associates I Limited
Partnership as of December 31, 2007 and 2006, and the results of its operations,
changes in partners’ equity (deficit) and its cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United
States of America.





As
discussed in Note A, the Operating Partnership sold its property in 2007 and
intends to dissolve in 2008, or as soon thereafter as possible.  Upon
dissolution of the Operating Partnership, and satisfaction of Partnership
obligations, any remaining cash will be distributed to investors and the
Partnership will dissolve.








/s/
Reznick Group, P.C.


Bethesda,
Maryland


April 12,
2008






















9


Presidential
Associates I Limited Partnership





BALANCE
SHEETS





December
31,







ASSETS2007
            
            
            2006Cash
      and cash equivalents
            
            $
            11,497,853
            
            
            $
            1,069,189Due
      from investor limited partners,net
      of allowance of $353,399
            
            
            —
            
            
            
            —Due
      from affiliates
            
            $
            60,000
            
            
            
            30,000$
            11,557,853
            
            
            $
            1,099,189LIABILITIES
      AND PARTNERS’ EQUITYLIABILITIESAccounts
      payable
            
            $
            36,553
            
            
            $
            30,457Accrued
      state replacement tax
            
            
            1,572,376
            
            
            
            —Due
      to investor limited partners
            
            
            737,946
            
            
            
            —Due
      to affiliate of general partner
            
            
            2,850,000
            
            
            
            759TOTAL
      LIABILITIES
            
            
            5,196,875
            
            
            
            31,216PARTNERS’
      EQUITY
            
            
            6,360,978
            
            
            
            1,067,973TOTAL
      LIABILITIES AND PARTNERS’ EQUITY
            
            $
            11,557,853
            
            
            $
            1,099,189

















See notes
to financial statements




10


Presidential
Associates I Limited Partnership




STATEMENTS
OF INCOME


Years
ended December 31,


2007
            
            
            2006ExpensesOther
            
            $
            4,908,505
            
            
            $
            57,656(4,908,505
            )
            
            
            (57,656
            )Other
      incomeDistribution
      from operating partnership
            
            
            65,393,460
            
            
            
            553,745Dividend
      and interest income
            
            
            1,628,833
            
            
            
            27,240NET
      INCOME (LOSS)
            
            $
            62,113,788
            
            
            $
            523,329Units
      of investor limited partnership interestoutstanding
            
            
            590
            
            
            
            590Net
      income (loss) allocated to general partner
            
            $
            310,569
            
            
            $
            2,617Net
      income (loss) allocated to special limited partner
            
            $
            310,569
            
            
            $
            2,617Net
      income (loss) allocated to investor limited partners
            
            $
            61,492,650
            
            
            $
            518,095Net
      income (loss) per unit of investor limited partnershipinterest
      outstanding
            
            $
            104,225
            
            
            $
            878








See notes
to financial statements
  11


Presidential
Associates I Limited Partnership




STATEMENTS
OF PARTNERS EQUITY (DEFICIT)




Years
ended December 31, 2007 and 2006










General
      partner
            
            
            Special
      limited partnerWinthrop
      Financial Company, Inc.
            
            
            Linnaeus
      Phoenix Associates Limited Partnership
            
            
            Investor
      limited partners
            
            
            TotalPartners’
      equity (deficit),December
      31, 2005
            
            
            (269,664
            )
            
            
            (571,573
            )
            
            
            1,385,881
            
            
            
            544,644Net
      income
            
            
            2,617
            
            
            
            2,617
            
            
            
            518,095
            
            
            
            523,329Partners’
      equity (deficit),December
      31, 2006
            
            
            (267,047
            )
            
            
            (568,956
            )
            
            
            1,903,976
            
            
            
            1,067,973Net
      income
            
            
            310,569
            
            
            
            310,569
            
            
            
            61,492,650
            
            
            
            62,113,788Capital
      contributions
            
            
            —
            
            
            
            —
            
            
            
            21,865
            
            
            
            21,865Distributions
            
            
            (307,656
            )
            
            
            (307,656
            )
            
            
            (56,227,336
            )
            
            
            (56,842,648
            )Partner’s
      equity (deficit),December
      31, 2007
            
            
            (264,134
            )
            
            
            (566,043
            )
            
            
            7,191,155
            
            
            
            6,360,978











See notes
to financial statements.




12


Presidential
Associates I Limited Partnership




STATEMENTS
OF CASH FLOWS




Years
ended December 31, 2007 and 2006





2007
            
            
            2006Cash
      flows from operating activitiesNet
      income (loss)
            
            $
            62,113,788
            
            
            $
            523,329Adjustments
      to reconcile net income to net cashprovided
      by (used in) operating activitiesBad
      debts
            
            
            353,399
            
            
            
            —Reduction
      of interest income for adjustment to
      distributions
            
            
            (802,741
            )
            
            
            —Increase
      in due from affiliates
            
            
            (30,000
            )
            
            
            (30,000
            )Increase
      in accounts payable
            
            
            6,096
            
            
            
            16,607Increase
      in liquidation expense,Payable
      to affiliate of general partner
            
            
            2,850,000
            
            
            
            —Increase
      in state replacement tax payable
            
            
            1,572,376
            
            
            
            —Net
      cash provided by operating activities
            
            
            66,062,918
            
            
            
            509,936Cash
      flows from financing activitiesDistributions
      to partners
            
            
            (55,633,495
            )
            
            
            —Increase
      (decrease) in due to affiliates
            
            
            (759
            )
            
            
            759Net
      cash provided by (used in) financing activities
            
            
            (56,436,995
            )
            
            
            759NET
      INCREASE (DECREASE) IN CASHAND
      CASH EQUIVALENTS
            
            
            10,428,664
            
            
            
            510,695Cash
      and cash equivalents, beginning
            
            
            1,069,189
            
            
            
            558,494Cash
      and cash equivalents, end
            
            $
            11,497,853
            
            
            $
            1,069,189




Significant
noncash investing and financing activities:
  Capital
contributions due from defaulted investors increased investor distributions by
$21,865.
  Due to
investor limited partners increased by $737,943 of distributions payable to
these partners as a result of distribution checks that were voided but expected
to be repaid during the year ending December 31, 2008.
  Due from
investor limited partners increased by $353,399, representing capital
contributions defaulted upon and interest calculated thereafter, net of
distributions retained.






See notes
to financial statements.




13


Presidential
Associates I Limited Partnership
  NOTES
TO FINANCIAL STATEMENTS
  December
31, 2007 and 2006




NOTE A -
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES





Presidential
Associates I Limited Partnership (the “Partnership”) was organized under the
laws of the State of Maryland on July 1, 1983 to acquire a limited partnership
interest in Presidential Towers, Ltd. (the “Operating
Partnership”).  As disclosed in Note F, the sale of the underlying
property of the Operating Partnership to closed on April 18,
2007.  Since the sale transaction has been consummated, the
Partnership’s only remaining asset is cash from the sale and the Partnership
will be liquidated by payments of expenses incurred in connection with the sale
and distribution of remaining proceeds to the partners.  However, as
the dissolution of the Partnership was not imminent as of December 31, 2007, and
the process could extend beyond the year ending December 31, 2008, the financial
statements are presented assuming that the Partnership will continue as a going
concern.





Use of
Estimates





The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period.  Actual results could differ from those
estimates.





Investment in the Operating
Partnership





The
investment in the Operating Partnership is reported using the equity method of
accounting, under which the initial investment is recorded at cost, increased or
decreased by the Partnership’s share of income or losses, and decreased by
distributions.  As there are no support arrangements between the
Partnership and the Operating Partnership, the investment cannot be reduced
below zero.





Federal and State Income
Taxes





No
provision or benefit for Federal income taxes has been included in these
financial statements since taxable income or loss passes through to, and is
reportable by, the partners individually.  A provision of $1,572,376
has been accrued for Illinois replacement tax.  The state tax was
calculated on the gain resulting from the Operating Partnership selling a
building located in Illinois.







14


Presidential
Associates I Limited Partnership
  NOTES
TO FINANCIAL STATEMENTS - CONTINUED
  December
31, 2007 and 2006







NOTE A -
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)





Cash
Equivalents





For the
purposes of the statements of cash flows, the Partnership considers all highly
liquid financial instruments, which consist of a money market account and
amounts invested under a repurchase agreement, purchased with maturities of
three months or less, to be cash  equivalents.  The carrying
amount approximates fair value because of the short maturity of these
instruments.





NOTE B -
CONCENTRATION OF CREDIT RISK





The
Partnership maintains its cash balances in one bank.  The balance is
insured by the Federal Deposit Insurance Corporation up to $100,000 at the
bank.  As of December 31, 2007, the uninsured portion of the cash
balances was $11,409,743.





NOTE C -
INVESTMENT IN OPERATING PARTNERSHIP





The
Partnership holds a 19.998% interest in the Operating Partnership which
constructed, owned and operated four 49-story residential and commercial towers
in Chicago, Illinois.  Losses from the operating partnership are
allocated entirely to one of the Operating Partnership’s general
partners.  Special allocations apply to the allocation of the proceeds
of capital transactions and cancellation of indebtedness.  As
disclosed in Note F, the sale of the underlying property of the Operating
Partnership closed on April 18, 2007 and the Operating Partnership intends to
dissolve in the year ending December 31, 2008.





The
following is a summary of the financial position of the Operating Partnership at
December 31, 2007 and 2006, and a summary of its results of operations for the
years then ended, prepared in conformity with accounting principles generally
accepted in the United States of America.






15


Presidential
Associates I Limited Partnership
  NOTES
TO FINANCIAL STATEMENTS - CONTINUED
  December
31, 2007 and 2006


NOTE C -
INVESTMENT IN OPERATING PARTNERSHIP (Continued)


BALANCE
      SHEETS2007
            
            
            2006ASSETSBuildings,
      improvements and personal property, netof
      accumulated depreciation of $162,779,618 and$129,387,245,
      respectively
            
            
            —
            
            
            $
            33,392,373Land
            
            
            —
            
            
            
            7,798,111Other
      assets
            
            $
            9,416,579
            
            
            
            12,583,638Total
      assets
            
            $
            9,416,579
            
            
            $
            53,774,122LIABILITIESMortgages
      payable
            
            
            —
            
            
            $
            133,000,000Other
      liabilities
            
            
            —
            
            
            
            8,998,677—
            
            
            
            141,998,677Partners’
      equity (deficit)
            
            $
            9,416,579
            
            
            
            (88,224,555
            )$
            9,416,579
            
            
            $
            53,774,122STATEMENTS
      OF OPERATIONS2007
            
            
            2006RevenueRental
            
            $
            10,709,077
            
            
            $
            35,148,683Other
            
            
            700,452
            
            
            
            1,920,909Interest
            
            
            483,375
            
            
            
            358,88611,892,904
            
            
            
            37,428,478ExpensesOperating
      expenses
            
            
            19,108,643
            
            
            
            29,133,771Amortization
            
            
            622,762
            
            
            
            155,546Depreciation
            
            
            —
            
            
            
            6,688,87119,731,405
            
            
            
            35,978,188Income
      (loss) before gain on sale of rental property
            
            
            (7,838,501
            )
            
            
            1,450,290Gain
      on sale of rental property
            
            
            432,479,635
            
            
            
            —NET
      INCOME (LOSS)
            
            $
            424,641,134
            
            
            $
            1,450,290




16
 
 Presidential
Associates I Limited Partnership
  NOTES
TO FINANCIAL STATEMENTS - CONTINUED
  December
31, 2007 and 2006


NOTE D -
RECONCILIATION OF NET INCOME





There are
no differences between the Partnership’s income for tax and financial statement
purposes for 2007 and 2006.





In
addition, there is no difference between buildings and improvements as recorded
for tax purposes and financial statement purposes by the operating partnership
for 2007 and 2006.





The
difference between the investment in the operating partnership for tax purposes
and financial statement purposes is due to the difference in the losses not
recognized under the equity method of accounting which are recorded for income
tax purposes as well as a gain on extinguishment of debt in prior years which
was recorded for financial statement purposes only.







NOTE E -
RELATED PARTY TRANSACTIONS





Due from
Affiliates





Pursuant
to the terms of the partnership agreement of the operating partnership, the
partnership is entitled to receive a reimbursement from the operating
partnership to reimburse it for its administrative expenses and professional
fees up to an annual maximum of $30,000.  A receivable was recorded
for $60,000 and $30,000 that was not reimbursed to the Partnership by the
Operating Partnership as of December 31, 2007 and 2006,
respectively.





Due to
Affiliates





As of
December 31, 2007 and 2006, $2,850,000 and $759, respectively, remains payable
to an affiliate of the General Partner.  On January 25, 2008, the
Partnership paid to an affiliate of the General Partner a liquidation fee in the
amount of $2,850,000.  Such affiliate was engaged by the General
Partner to provide services to the Partnership in connection with the Operating
Partnership’s decision to sell its only asset, which sale would result in the
liquidation of the Operating Partnership and the Partnership.  While
the Operating Partnership has sold such asset, it has not yet
dissolved.  The liquidation of the Partnership will be completed after
the Operating Partnership dissolves and the Partnership satisfies all debts and
distributes any remaining cash to its investors.  Such affiliate of
the General Partner continues to provide services to the Partnership in
connection with such liquidation process.





17
 
 Presidential
Associates I Limited Partnership
  NOTES
TO FINANCIAL STATEMENTS - CONTINUED
  December
31, 2007 and 2006


NOTE F –
SUBSEQUENT EVENT





On
January 24, 2008, the Partnership received a distribution from the Operating
Partnership of $1,679,832.  This leaves the Operating Partnership with
approximately $1,000,000 in its bank account to satisfy contingent
obligations.  Once these obligations are satisfied, it is expected
that the Operating Partnership will distribute any remaining funds and
liquidate.





On February 27, 2008, theManaging General Partner distributed cash proceeds to the investor
limited partners in the aggregate amount of $1,302,104 which equates to
$2,206.95 per investment unit.





















































18


Presidential
Associates I Limited Partnership




NOTES
TO FINANCIAL STATEMENTS - CONTINUED




December
31, 2007 and 2006











Item
      8.
            Changes in and
      Disagreements with Accountants on Accounting and FinancialDisclosure.





None.







Item
      8A(T).
              Controls and
      Procedures




Disclosure
controls
 
 As of the
end of the period covered by this annual report on Form 10-KSB, an evaluation
was carried out under the supervision and with the participation of the General
Partner’s management, including our Chief Executive Officer and Chief Financial
Officer, of the effectiveness of the Registrant’s disclosure controls and
procedures (as such term is defined in Rule 13a-15 (e) under the Securities
Exchange Act of 1934).  Based on that evaluation, the General
Partner’s Chief Executive Officer and Chief Financial Officer have concluded
that, as of the end of such period, the Registrant’s disclosure controls and
procedures were effective as of the end of the period covered by this
report.  In addition, no change in our internal control over financial
reporting (as defined in Rule 13a- 15 (f) under the Securities Exchange Act of
1934) occurred during the fourth quarter of our fiscal year ended December 31,
2007 that has materially affected, or is reasonably likely to materially affect,
our internal control over financial reporting.
 
 Internal
controls
 
 Management
is responsible for establishing and maintaining adequate internal control over
financial reporting for the Partnership.  This annual report does not
include an attestation report of the Partnership’s registered public accounting
firm regarding internal control over financial
reporting.  Management’s report was not subject to attestation by the
Partnership’s registered public accounting firm pursuant to temporary rules of
the Securities and Exchange Commission that permit the Partnership to provide
only management’s report in this annual report.


Item
      8B.
            Other
      Information.





None.
































19


PART
III






Item
      9.
            Directors, Executive
      Officers, Promoters and Control Persons; Compliance With Section 16(a) of
      the Exchange Act.





The Partnership has no officers or
directors.  The Managing General Partner manages and controls
substantially all of Registrant’s affairs and has general responsibility and
ultimate authority in all matters affecting its business.  As of March
1, 2008, the names of the directors and executive officers of the Managing
General Partner and the position held by each of them are as
follows:





Name
            
            Position
      Held with theManaging General Partner
            
            Has
      Served as a
              Director
      orOfficer SinceEggert
      Dagbjartsson
            
            President,
      Chief Executive Officer and Director
            
            10/06Andrew
      Prague
            
            Chief
      Financial Officer
            
            10/06Victor
      J. Paci
            
            Vice
      President, Treasurer, Secretary and Director
            
            10/06





Mr.
Dagbjartsson, age 44, has been a Managing Director of Equity Resource
Investments, LLC and its affiliates (“ERI”) since October,
2002.   Prior thereto, he served as Executive Vice President of
Equity Resources Group, Inc. since 1991.




Mr.
Prague, age 50, has been a partner in the accounting firm of Prague and Co.
since 1987 and has served as the Managing General Partner’s Chief Financial
Officer since October, 2006.




Mr. Paci,
age 57, has been a Managing Director of ERI since May, 2005.  Prior to
joining ERI, Mr. Paci was a partner in the law firm of Bingham McCutchen LLP
since November 1991.




Based
solely upon a review of Forms 3 and 4 and amendments thereto furnished to the
Partnership under Rule 16a-3(e) during the Partnership’s most recent fiscal year
and Forms 5 and amendments thereto furnished to the Partnership with respect to
its most recent fiscal year, no director, officer, beneficial owner of more than
ten percent of the Units that failed to file on a timely basis, as disclosed in
the above Forms, reports required by Section 16(a) of the Exchange Act during
the most recent fiscal year or prior fiscal years.





From December 1997 to September 2005
Coordinated Services of Valdosta, LLC provided the daily asset and management
services and investor services for the Partnership pursuant to the terms of a
services agreement.  This agreement was terminated effective September
1, 2005 and the Managing General Partner became directly responsible for such
services. See “Item 11, Security Ownership of Certain Beneficial Owners and
Management.”





20


The
Managing General Partner does not have a separate audit committee.  As
such, the officers of the Managing General Partner fulfill the functions of an
audit committee.  The Managing General Partner has determined that
Andrew Prague meets the requirement of an “audit committee financial
expert”.





The
persons with authority over the Partnership are all employees of the Managing
General Partner.  The Managing General Partner has adopted a code of
ethics that applies to such persons.  The Partnership will provide to
any person without charge, upon request, a copy of such code of
ethics.  All such requests should be made in writing to Robert
Porcelli, c/o Equity Resource Investments, LLC, 1280 Massachusetts Avenue,
4th
Floor, Cambridge, MA 02138.






Item
      10.
            Executive
      Compensation.





The Partnership is not required to and
did not pay any compensation to the officers or directors of the General
Partner. The General Partners do not presently pay any compensation to any of
their officers or directors.  (See Item 12, “Certain Relationships and
Related Transactions.”)






Item
      11.
            Security Ownership of
      Certain Beneficial Owners and Management and Related Stockholder
      Matters.





(a)           Security ownership of
certain beneficial owners.





The Partnership is a limited
partnership and has issued Units of limited partnership interest.  The
Units are not voting securities, except that the consent of the Limited Partners
is required to approve or disapprove certain transactions including the removal
of a General Partner, certain amendments to the Partnership Agreement, the
dissolution of the Partnership or the sale of all or substantially all of the
assets of the Partnership.  Based on the Partnership’s books and
records, at April 1, 2008 the only holder of 5% or more of the Partnership’s
Units is ERI (through various investment funds managed by affiliates of ERI)
which is an affiliate of the Managing General Partner and which collectively
owns 56.7977 Units representing 9.53% of the Units in the
Partnership.  The address for ERI is 1280 Massachusetts Avenue,
Cambridge, Massachusetts 02138.





(b)           Security Ownership of
Management.





No officer, director or partner of the
Managing General Partner owns any Units as of April 1, 2008.





(c)           Changes in
Control.





From
December 1997 to September 2005 Coordinated Services of Valdosta, LLC provided
the daily asset and management services and investor services for the
Partnership pursuant to the terms of a services agreement.  This
agreement was terminated effective September 1, 2005 and the Managing General
Partner became directly responsible for such services.








21


Item
      12.
            Certain Relationships
      and Related Transactions, and Director
  Independence.





Pursuant
to the terms of the partnership agreement of the Operating Partnership, the
Partnership is entitled to receive a reimbursement from the Operating
Partnership for its administrative expenses and professional fees up to an
annual maximum of $30,000.  During both 2007 and 2006, $0 and $0,
respectively, was paid to the Partnership by the Operating Partnership as
reimbursement of reimbursable expenses incurred by the
Partnership.  As a result, $60,000 and $30,000 is included in due from
affiliates on the balance sheets as of December 31, 2007 and 2006,
respectively





The Partnership has outsourced its
accounting function to Prague & Company, P.C.  The firm is owned
by Andrew Prague, who also serves as Chief Financial Officer for the
Partnership. During both 2007 and 2006, $9,853 and $6,182, respectively, was
accrued by the partnership for accounting fees due to Prague & Company,
P.C.






Item
      13.
            Exhibits





Refer to
Exhibit Index included herein.






Item
      14.
            Principal Accounting
      Fees and Services





The
Managing General Partner has reappointed Reznick Group, P.C. as independent
auditors to audit the financial statements of the Partnership for
2007.   The Managing General Partner approved 100% of the
services listed below.





Audit Fees. The
Partnership paid to Reznick Group, P.C. audit fees of approximately $26,000 and
$16,200 for the years ended December 31, 2007 and 2006,
respectively.





Audit Related Fees.
The Partnership paid to Reznick Group, P.C. audit related fees of approximately
$23,653 and $5,100 for the years ended December 31, 2007 and 2006,
respectively.





Tax Fees. The
Partnership paid to Reznick Group, P.C. fees for tax services of approximately
$10,000 and $5,400 for the years ended December 31, 2007 and 2006,
respectively.





All Other Fees. The
Partnership did not pay any other fees to Reznick Group, P.C. for the years
ended December 31, 2007 and 2006.






22


SIGNATURES





Pursuant to the requirements of Section
13 or 15(d) of the Securities Exchange Act of 1934, the Partnership has duly
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.






PRESIDENTIAL ASSOCIATES I LIMITED PARTNERSHIPBy:
              Winthrop
      Financial Co., Inc.,Managing
      General Partner


By:
                /s/ Eggert
      DagbjartssonEggert
      DagbjartssonChief
      Executive Officer and PresidentDate:  April
      14, 2008










Pursuant to the requirements of the
Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Partnership and in the capacities and on the
dates indicated.






Signature/Name
              
              Title
              
              Date/s/
      Eggert Dagbjartsson
              
              President,
      Chief Executive Officer
              
              April
      14, 2008Eggert
      Dagbjartsson
              
              and
      Director/s/
      Andrew Prague
              
              Chief
      Financial Officer
              
              April
      14, 2008Andrew
      Prague













23


EXHIBIT
INDEX




Exhibit
      No.
              
              FN3(a)
              Amended
      and Restate Limited Partnership Agreement and Certificate of Amendment of
      Presidential Associates I Limited Partnership
              (1)3(b)
              Amendment
      to Amended and Restated Limited Partnership Agreement and Certificate of
      Limited Partnership of Presidential Associates I Limited Partnership dated
      April 19, 1995
              (3)10(a)
              Form
      of Investor Bond issued to the Partnership by Continental Casualty
      Company
              (1)(b)
              Trust
      Agreement dated as of September 15, 1980 between the Operating Partnership
      and LaSalle National Bank
              (1)(c)
              Letter
      of Credit and Reimbursement Agreement dated as of July 21, 1983 between
      the Operating Partnership and Citibank, N.A.
              (1)(e)
              Regulatory
      Agreement for Multi-Family Housing project dated as of July 1, 1983
      between LaSalle National Bank, as Trustee, the Operating Partnership, the
      General Partners and the Secretary of Housing and Urban
      Development
              (1)(i)
              Architectural
      Services Agreement dated as of July 1, 1983 between LaSalle National Bank,
      as Trustee, and Solomon Cordwell Buenz & Associates,
    Inc.
              (1)(p)
              Third
      Amended and Restated Limited Partnership Agreement of Presidential Towers,
      Ltd., dated April 19, 1995
              (3)(s)
              Amendment
      to Regulatory Agreement for Multifamily Housing Projects, dated as of
      April 18, 1995, between LaSalle National Bank, as Trustee, and
      Presidential Towers, Ltd. and the Secretary of Housing and Urban
      Development
              (3)(t)
              Restructuring
      Agreement, dated April 18, 1995, among LaSalle National Trust, as Trustee,
      Presidential Towers, Ltd. and the Secretary of Housing and Urban
      Development
              (3)(u)
              Services
      Agreement, dated December 16, 1997, by and between First Winthrop
      Corporation, Winthrop Financial Co., Inc., WFC Realty Co., Inc., WFC
      Realty Saugus, Inc., Winthrop Properties, Inc., Winthrop Metro Equities
      Corporation, Winthrop Lisbon Realty, Inc. and Northwood Realty Co., Inc.
      and Coordinated Services of Valdosta, LLC
              (4)31.1
      and
              Certifications
      Pursuant to Section 302 of the Sarbanes-Oxley Act of 200231.232
              Certification
      Pursuant to Section 906 of the Sarbanes-Oxley Act of 200299.1
              Independent
      Auditor’s Report


__________________





(1)
            Incorporated
      herein by reference to the Partnership’s Registration Statement on Form
      10(Commission
      Partnership file number 0-12210).


(2)
            Incorporated
      herein by reference to Exhibit 10(p) to the Partnership’s Annual Report
      onForm
      10-K for the year ended December 31,
1985.


(3)
            Incorporated
      herein by reference to Partnership’s Annual Report on Form 10-K for
      theyear
      ended December 31, 1995.


(4)
              Incorporated
      by reference to the Partnership’s Quarterly Report on Form 10-QSB for the
      quarter ended March 31, 1998.





24